Since the last year (2002) the European Union’s regulation for the car industry undergoes an excessive restructuring. It aims to bring a spirit of liberalization and improve the competition between the car companies. However is still unclear what will finally change and what will remain the same. The dilemmas are concerned at the moment are in general:
•Regulation or de-regulation
•Price differences or harmonization
•Lean sales or Internet sales
•Sales volume in the economic downturn
This effort is supported but contradicted at the same time. Some arguments for maintaining the existing scheme are:
•Dealer selection is a condition for adequate sales and after-sale services
•The brand value (that consists of the product and after-sales services) is possible only through dealer networks.
•Dealer networks support independent service and repair shops.
•Consumers expect manufacturers’ responsibility
•“Lean distribution” is in favour of customers as it cuts prices.
Some arguments in favour of the planned change are:
•The improvement of competition will lower prices.
•Present regulation does not consider the Internet, supermarkets and hypermarkets
•Dealers do not have the opportunity to contact with customers out of their contract territory.
•Indistinct position of Internet sellers and supermarkets
•“An Internet operator cannot be re-seller”.
Reference: http://www.union-network.org/UNIsite/sectors/commerce/Activities/Car_sales_change_in_EU.html